Fraud Detection And Prevention (FDP) Market Size, Share, Growth Analysis, By Fraud Type(Identity fraud, Investment fraud, Payment Fraud, Others), Functionality(Real Time Detection, Forensic Analysis), Component, Deployment Mode, Organization Size, Vertical, and Region - Industry Forecast 2024-2031

Fraud Detection and Prevention Market size was valued at USD 41.94 Billion in 2022 and is poised to grow from USD 57.73 Billion in 2023 to USD 272.34 Billion by 2031, at a CAGR of 23.80% during the forecast period (2024-2031).

The Fraud Detection and Prevention Market is highly competitive and characterized by the presence of several key players. The market is driven by the Digital Revolution and IoT's Growing Influence. Also, With the surge in online applications and mobile banking services, there's been a corresponding increase in the proliferation of fake websites and mobile apps. This trend extends beyond the banking sector, infiltrating industries such as retail, e-commerce, manufacturing, and healthcare.  Market players focus on strategic collaborations, partnerships, and mergers and acquisitions to expand their market presence and gain a competitive edge. Major players in the market include Accenture, IBM, Intel Security, Symantec, and Verizon. These companies are focusing on developing new technologies and products to detect fraud and prevent it from occurring. They are also partnering with various organizations to help them combat fraud. 'IBM Corporation (USA) ', 'Oracle Corporation (USA) ', 'SAS Institute Inc. (USA) ', 'FICO (USA) ', 'NICE Actimize (USA) ', 'Experian Information Solutions, Inc. (USA) ', 'ACI Worldwide Inc. (USA) ', 'BAE Systems (England) ', 'ThreatMetrix Inc. (USA) ', 'DXC Technology (USA) ', 'RSA Security LLC (USA) ', 'Kount Inc. (USA) ', 'LexisNexis Risk Solutions Group (USA) ', 'Splunk Inc. (USA) ', 'Easy Solutions Inc. (USA) ', 'Feedzai (Portugal) ', 'Forter (USA) ', 'Simility (USA) ', 'Pindrop Security (USA) ', 'Signifyd (USA)'

A worldwide digital revolution is underway, with internet users expanding their online activities beyond searches and social networking to encompass tasks like banking and shopping, accelerated by the COVID-19 lockdowns. This surge in online transactions has unfortunately led to a rise in fraudulent websites, particularly in sectors like finance and shipping services, exploiting unsuspecting customers. Concurrently, the Internet of Things (IoT) is rapidly integrating into consumer lifestyles and industrial processes, with the number of connected devices projected to reach 23 billion. However, this proliferation of IoT devices also poses cybersecurity risks, as they serve as gateways for hackers to access sensitive customer data, highlighting the need for robust security measures in this increasingly connected landscape.  

Evolution of Fraudulent Activities in the BFSI Sector: Fraudulent activities within the Banking, Financial Services, and Insurance (BFSI) industry have undergone significant evolution over the decades. While previously confined to traditional methods like cheque and wire frauds, the emergence of the digital era has ushered in a new era of virtualized fraud. The proliferation of the cybersphere has expanded the scope of cybercriminal activities, leading to more sophisticated and technologically driven fraudulent schemes. This evolution is further fueled by the increasing adoption of technology among customers, with digital channels such as Internet banking and mobile banking becoming prominent choices for banking services. As a result, there is a pressing need for banks to harness fraud prevention solutions to mitigate the risks associated with these modern forms of fraud. 

North America stands to be the major player in the fraud detection and prevention market and holds 41% of the fraud detection and prevention industry in 2023, primarily due to being one of the regions most affected globally by money laundering and terrorist financing. Therefore, it is home to a high number of fraud detection and prevention providers. Some of the challenges that Banks, governmental bodies, and financial institutions operating in this region include increasing fraud complication, which has forced them to embrace technological measures in combating fraud. Since the world is increasingly moving towards interconnectedness and automation, the protection of enterprise crucial structures and information becomes a major issue. North America, which is regarded as one of the technological hubs of the world, occupies the most share of cybersecurity vendors in the market.